Manhattan Judge Rejects CFTC And Gemini Bid to Overturn $5 Million Settlement

A federal judge in Manhattan has rejected a joint request by the US Commodity Futures Trading Commission (CFTC) and Gemini, a cryptocurrency exchange founded by twin brothers Cameron and Tyler Winklevoss, to overturn a $5 million settlement reached during the Biden administration.

 

In a ruling, US District Judge Alvin Hellerstein said the agency and Gemini Trust Co had failed to meet the legal standards required to set aside the settlement, which resolved a lawsuit over statements made by Gemini during the CFTC’s review of a proposed bitcoin futures contract.

 

The CFTC sued Gemini in 2022, alleging that the company had made false or misleading statements during the agency’s review of the proposed futures product. The settlement, reached in January 2025, came towards the end of Democratic President Joe Biden’s administration, shortly before a trial was due to begin.

 

Republican President Donald Trump’s administration has adopted a more industry-friendly and narrower approach to enforcement in the cryptocurrency sector.

 

In May, the CFTC and Gemini jointly asked Hellerstein, who was appointed by Democratic President Bill Clinton, to vacate the settlement and the court order approving it. They argued in a court filing that the agency would not have brought the 2022 case under the enforcement priorities and standards adopted by the Trump administration.

 

The filing also argued that regulators should not have accused Gemini of making false statements in connection with its bitcoin futures business. The CFTC and Gemini said the agency had resorted to “inappropriate tactics” to pursue the lawsuit.

 

Gemini agreed that it would not seek a refund of the $5 million penalty if the settlement were set aside.

 

Hellerstein said Gemini had contested the CFTC’s allegations for more than three years before voluntarily agreeing to settle the case. He added that the agency’s current position on the matter did not justify vacating the settlement.

 

The Winklevoss twins became widely known after accusing Mark Zuckerberg of stealing their idea for Facebook. The dispute was resolved in 2008 through a settlement that included cash and company shares.